Stella-Jones Inc. (TSX:SJ) agreed to acquire Locweld Inc. from Cyr family for CAD 65 million on May 7, 2025. A cash consideration of CAD 58 million will be paid by Stella-Jones Inc. Stella-Jones Inc. will pay an earnout/contingent payment of CAD 7 million cash. As part of consideration, CAD 65 million is paid towards common equity of Locweld Inc. The transaction will be financed through senior debt of CAD 58 million.
For the period ending September 30, 2024, Locweld Inc. reported total revenue of CAD 55 million. The expected completion of the transaction is May 7, 2025. Stella-Jones also intends to invest in a capital expenditure program of approximately $15 million to increase Locweld?s current output and optimize operational efficiencies.
Michael Cyr, Chief Executive Officer of Locweld, will be moving on from his role, and key members of management will remain within the organization to support the business.
